Keesler Federal Credit Union Adds 7-Month CD

UPDATE 8/18/2018: Thanks to DA member, SYC, for posting this info in the Forum: "per CSR over phone just moments ago, this special deal will end at the close of 8/21/18. You have to have available funds in your Keesler savings account on 8/21/18 at the latest in order to open this 7-month CD special."

UPDATE 8/17/2018: The easy membership requirement through joining the American Cancer Society Cancer Action Network has been expanded to include all U.S. citizens and resident aliens, no matter where they live.

Availability: Easy membership requirement for residents of Mississippi and Louisiana; residents of six southeast Mississippi counties and two southeast Louisiana parishes; employees/members of more than 300 SEGs.

I have to admit when I saw Keesler Federal Credit Union’s (KFCU) new 7-month Share Certificate Special listed at 5.00% APY, I thought it was probably a mistake. When CSR confirmed the 5.00% APY was correct, I expected to be told there was a low balance cap. Again, I was wrong. The 7-month Share Certificate Special (5.00% APY) can be opened with a $1k minimum deposit, with no stated balance cap.

This very competitive Share Certificate Special is also offered as an IRA (Traditional and Roth), earning the same APY with the same funding requirements.

If the withdrawal does not reduce the certificate funds below the required minimum balance for this type of certificate, the member shall forfeit at the certificate rate an amount equal to the lesser of:

1. All dividends for 90 days from the amount withdrawn for certificates with a term of 1 year or less; or all dividends for 180 days on the amount withdrawn for certificates greater than 1 year; or

2. All dividends on the amount withdrawn since date of issuance or renewal.

Availability

Headquartered in Biloxi, Mississippi, Keesler Federal Credit Union’s field of membership (FOM) is quite varied, including residency, employment, and association membership as determinants.

Residency – Individuals who live, work, worship, or attend school in the Mississippi counties of Forrest, Hancock, Harrison, or Pearl River, or select census tracts in Hinds or Jackson Counties are eligible to join. Also qualifying for membership are those who live, work, worship, or attend school in select census tracts in St. Tammany or Orleans Parish, Louisiana.

Military Relationship – Active or retired military who can use the services at Keesler Air Force Base or at Royal Air Force Bases in the UK qualify for membership.

Personal Relationship – Immediate family members (spouse, parent, grandparent, sibling, child, grandchild, significant other) of a current KFCU member are welcome to apply.

SEGs – Employee and/or members of more than 300 SEGs are eligible for membership.

The fourth option on the first page of KFCU’s online membership application is “I am a member of the following association.” The first association listed is the American Cancer Society Cancer Action Network (ACS CAN), a “nonprofit, nonpartisan advocacy affiliate of the American Cancer Society” that anyone can join. Hoping this could possibly be an easy membership backdoor, I called KFCU, only to be disappointed. At first, CSR said any ACS CAN member is qualified to join KFCU, but after checking with a supervisor, she stated that only residents of Mississippi or Louisiana can qualify through ACS CAN. I wasn’t able to find this residency requirement anywhere on KFCU’s website, so I’m not 100% convinced of this limitation.

UPDATE 8/17/2018: After contacting KFCU this morning, I was told that following so much “out-of-area interest” in the 7-month Share Certificate Special, the FOM has recently been expanded to allow any U.S. citizen or resident alien to join through an ACS CAN membership, no matter their residency status.

Credit Union Overview

Keesler Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.16% (excellent) based on March 31, 2018 data. In the past year, KFCU has increased its total non-brokered deposits by $61.9 million, an above average annual growth rate of 2.87%. Please refer to our financial overview of Keesler Federal Credit Union (NCUA Charter # 5561) for more details.

Chartered in 1947, Keesler Federal Credit Union was established by ten civil services employees at Keesler Field, the predecessor of Keesler AFB. At the end of the first year of operations, KFCU had approximately 270 members and $7k in assets. KFCU will be celebrating its 71st anniversary next month as the largest credit union in Mississippi, with more than 214,400 members and assets in excess of $2.6 billion.

How the Share Certificate Special Compares

Let me state the obvious – when compared to the similar length-of-term CDs tracked by DepositAccounts.com that are available within the FOM, Keesler Federal Credit Union’s 7-Month Share Certificate Special APY currently ranks first.

The above rates are accurate as of 8/15/2018.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Can confirm this CU imposes residency requirements notwithstanding it’s published criteria for membership. I qualified as active military eligible to use facilities at Keesler and applied in DEC 2017. However, my application was declined bc I didn’t reside in either LA or MS.

Obviously a stretch...if the supr was on any type of normal bonus plan, s/he will not make the quota. Escalate or ask when membership requirements are going to properly reflect the deal...what other undisclosed items are out there?

It's 7 months, - so even if we could all qualify, there's not so very much to be gained. Sure, I'd jump on it if I could, - but this is more of a tease than a truly substantial offer (unless you have millions).

I don't understand that if you are a member of ACS CAN, why do you need to be a residents of Mississippi or Louisiana?I thought if you are a resident of Mississippi or Louisiana, you're automatically qualify to join.

If I'm interpreting Ken's wrote-up correctly, if you have established residency in certain counties in MS or parishes in LA, you qualify. Otherwise to qualify via membership to ACS CAN, you must reside anywhere in MS or LA.

Seems like a deal worth pursuing if one can get it. 5% for 7 months works out to around a 2.9% absolute return, which is a better yield than that offered by majority of 1 year CDs. Am I missing something?

It may not seem logical to us individual investors, but if enough of us collectively remit enough funds for even a few days (and with a 5% teaser rate that's almost a certainty), it makes sense to the CU as it has the use of an extremely large float up to the time they reimburse the money to those they can no longer accept - which can be quite a while for those who cannot be refunded electronically.

Went through the membership application process to explore if I would be granted an acct. The membership application does have an option to join via association with the American Cancer Society. Filled out the membership application with all the required info. The online application got to establishing acct password, security questions, acct. funding info, etc. However at the end it notified me that not all my info could be verified and I would be contacted by a rep. Suspect I will be declined because of residency despite the membership application processing me through all the gates.

On the ACS website there is an option to donate various amounts, and also an option for you to choose a different amount. The lowest of their options was $10, so I was wondering if you did that or if you chose a different amount?...…. $5 ?Also, do you know who they did the credit check with? Equifax? Transunion? Experian?

I am not an LA or MS resident, I contacted Keesler FCU yesterday about the deal. I am retired military so meet that aspect, but they could not open the account based on that for an out of state resident, they said they would look into a way and a supervisor would call me back. I received that call this morning, they required a donation to the American Cancer Society Cancer Action Network (options on the web page are $10 and up) once I did that, I called the bank back and began the process of opening an account. I was required to forward the donation email, they did a HARD credit pull, and I will be required to return the signature card they send, but have to get it notarized and provide a copy of my drivers license. I've never had a more complicated account opening, but the account is now open, it is a savings account ($5 min) which I can then transfer funds into, and then open and fund the 7 month 5% special CD. I asked if it would still be available next week once I get all the ACH stuff validated and set up, it's obviously a limited promotion, but they have not received any end date yet. The process works if you put in some time and effort.

It's only 7 months. They make you jump through hoops to open an account just like Sharonview did. I don't see these same people complain about it. AT least for a long term CD I don't have to deal it the hassle for years, but this one you have to go through it again when it matures in several months....so I don't really care about an extra 1% TBH.

This is not intended as a reply to Comment #26.According to CSR over phone:

1. 7-month Special CD is limited to ONE per household. (This is not stated anywhere in their website. It is in their special promotion per CSR.)

2. For those looking to open an IRA 7-month Special CD which involve direct transfers from your current trustee to Keesler, you run the risks of their 7-month Special CD withdrawn before your check is received by Keesler. (This is unlike Sharonview for those who took advantage.)

Is Keesler a participant in the shared Credit Union network? I'm wondering if I (an out of state resident) manage to get accepted for membership and establish a savings account, can then easily and quickly fund the CD with a shared branch deposit? Anyone accomplished this yet?

Today is Friday 8/17. CSR just told me that the CD special is being pulled on Tuesday. ALSO, the CD special is ONE per household. So I will be combining my wife's available cash, and mine, and doing a single larger CD. ALSO - i will be doing a check at the shared branch, and my rep said she can move the check hold onto the CD and fund the CD. SOOOooo - wish me luck.

For those who were lucky to open the 7mo CD, I guess they will give you run around to close it. It happened to me in a small credit union when almost everybody closed the CDs, the CU ran out of money and rolled some of the CDs into the second term claiming did not receive the letter on time to close the CD. Be careful with small CUs.

So for this couldn't you just close the new CD once you are into it for a few days/one week/etc. and lose nothing? Make 5% per year for the first 7 mo, then they roll it into a 0.1% 5 year CD and you cancel it you only use the 0.1% portion for however many days you forgot about it?

This looks like a one-time bridging or float play by the CU to raise a set amount of funds by a certain date. For a very limited time they offered a very high, pre-emptive rate to ensure they would receive all the funds they needed to cover their pending due date(s), cherry-picked the applications they would allow up to the amount they needed, and, if necessary, will eventually return the money to those deemed received untimely, which provided them with free float money. The real cost to the CU will probably be negligible and their mission will be accomplished. Like Sharonview, we should not expect to see a repetition of this kind of offer from Keesler any time soon.

I was having an issue with the application. I had to choose I was employed by one of those groups so I called in and she took my application over the phone, did the hard pull & security questions (4 multiple choice) and got my account number.

However, we seem to have hit a snafu regarding being able to open the CD before the check clears. (At a shared branch)

She said others have been wiring the money in so I may have to do that. She is going to call me back having already checked with her supervisor and still not getting approval.

Lovely young lady helped me.

Regarding the online application, I HAD to choose I went to USM or William Carey University. There was no other option.

As for the Cancer society donation, they are taking the $10 from what I send in and donating it for me. So, I send an extra $15+ the CD amount which I am struggling with right now.

I want to pretty much use all my free funds...except what is in the brokerage account. And I promised them it would stay for 9 months as part of a free trades deal.

I still have 2 CDs at Ally that will be broken but not today. (2.25% 5 year)

Copy of drivers license is not required but the signature on the membership application must be notarized.

If I max this out and we have a market crash, I will be kicking myself. I have other CDs maturing around the end of the year first of next year.

Do you guys have faith in this CU? They cannot really lend money out at rates much higher than 5% unless I'm missing something...

I have been on the call with them waiting for a customer rep and it looks like they are very small or swamped. Since I'm in Massachusetts getting the money out of Mississippi may be an interesting challenge?

As for my application, there is a place to join as an association member but you can't or I can't click on any of them. I would have expected to be able to click on one & the application pop up but that did not happen. Because nothing happens when you try to click on any of the members.

App also was deferred for further review. I waited for 20 mins on hold before getting the call back option. Since this offer is now very time sensitive, I would be more confident in wiring funds as opposed to depositing a check at an affiliate. Hope that is a permissible option. I also plan on linking the savings account externally and using an ACH transfer to recover the matured funds.

They appear to be insured but are probably working at breakneck speed to handle all the frantic applications. When I tried calling them last Friday their lines were jammed for over an hour. However, the person who eventually took the call was very professional and polite.

The 5% 7 mo deal expires at the end of the day on Tuesday, Aug 21. One rep I spoke with said that if you have made application on line but do not have your paper copy signed at the CU by Tues, it is ok so long as they have the funds on that date.

Further to my comment above, I just got off the phone with one of the reps who told me that to make the deadline you have to do a wire transfer since they put a hold on the funds coming in from a shared branch deposit, and they will not lift the hold to open the CD. I tried to explain that I am not trying to take $ out, only to move it from one place to another at Keesler FCU but they would not agree. Also, they told me that I had to send the paper docs by fax or email in order to get an acct # in time as well as mailing the hard copy.

CSR asked that I email copy of my license and I would then get another call back. Originally advised that I ACH the funds which is an obvious non starter. When pressed he agreed that a wire would be accepted but clearly will need an acc# to do that. ACS membership he further advised could be done by requesting a link on chat.

My concern with the wire is the cost and my concern with letting the check sit there in the savings is it only pays .20%. (Even assuming they would time stamp your application and give you the rate which does not seem to be the case)

I hope I did not blow a hard pull for nothing.And my rep said I could send them the $10 for the ACS. Her idea, not mine.

Credit CheckThey use Experian for the Authentication Questions on ApplicationThey use Equifax for the Credit CheckNOTE: For those with Credit Freeze, the CSR told me to 'unfreeze' at both places in order to get through the application process.

This type of offer has probably attracted a lot of interest from people out there looking to park dirty money at a high rate. DHS has regs that require financial institutions to obtain additional personal information and to ensure valid IDs to prevent money laundering.

Since when can a credit union, unilaterally and upon short notice, expand its FOM? I concede the possibility a credit union can of its own volition narrow, or restrict, a special deal to only a portion of its pre-approved FOM. But I think for any credit union to expand its FOM it needs approval from a higher authority.

Just emailed them a copy of the ACS membership receipt. Wire can be executed on Monday free of charge from my Vanguard account and arrive before the end of the business day on Tues. Still waiting to get a call back or email confirmation of my acceptance and acc#. They are open until 1pm on Sat so have another day to work with.

Deposited the check, held a little bit of cash back but deposited about 90% of my available funds excluding the brokerage and the ally CDs that will be broken soon. Those should give me some cash availability in the event we have a big market decline before year end.

I did not ask if it will be dated today or Monday. Hopefully today.

Called in and the new rep, of course, said it could not be done so i am on hold for the rep i spoke with previously.

Several years ago while on an extended vacation 1700 miles from home, a oil & gas lease deal came up back home that required notarized papers, we went to a shared branch with our CU. They couldn't be more accommodating. Even provided two witnesses which were also required along with the notary authentication. All free of charge. Thanks to Black Hills FCU in SD.

My credit union is just a couple miles farther and I go near there almost every week or more anyway. So not a huge deal. But on a Friday afternoon, you're talking an extra 20+ minutes there and back. I've considered opening an account with the closer one but they don't have a single thing that is attractive. Still have to come inside for shared branch transactions.

Any idea if you can ACH out of that share account? I remember we almost got stung on some fees from Discover when trying to pull funds out of a share account at NavyFCU. Ended up having to open up a checking account to get funds out.

I asked the rep if there was any problem linking an account at an outside bank and she said no. And I set up thing from AA but then before doing Ally, I realized that AA pulls 2 transfers, the CD was one and ACS might be another. So I held off to make sure I get 6. I once had a cu account that only gave me 3 ach translations. I know, sounds crazy but its true. I opened a 2nd account because of it back then.

I thought Penfed limited you to $5000 via ach but I was informed incorrectly and ACHed my last CD proceeds out.

ACS link provided via chat. Finally after a long hold I spoke with Sade who was far more helpful than the first rep whose instructions would have kept my app in suspension beyond the deadline! License and ACS receipt were emailed directly to her while I stayed on the line and she then gave me the routing and saving account #s. Wire will go out Monday but will need to be transferred to the CD by a phone call after the funds are credited. The wire desk is open until 5PM CST so it must be posted first before they can finalize the cd account prior to 6PM. I don't advise doing this any other way as there is no room or time for error or misunderstanding.

I was about to do an 18 month at 3.15% but it ended. This deal is SIGNIFICANTLY BETTER in that its likely on March 17th 2019 when my CD matures I will be able to get a better deal than the 3.15%.

Compared to 5% though, it will almost certainly be less.

Andrews was a good deal at 2.75% but this blows that out of the water.

The rep that I got cut off with called back and its all set. He emailed me a temporary password and i was able to log in and see my account.

I guess I will go ahead & set up a link at AA although I doubt the proceeds will be going there.

Can't set up a link at my broker until I have a statement to show them, believe it or not. (Yes, I know, any john doe can open an account without a statement. But for 15 year customers, they need a statement. Unless you are using a big bank and none of mine are)

I guess that's a security thing. That way some scammer cant add a link and empty my account.

I asked about setting the CD to automatically transfer to the share account on 3/17 but he said he could not...I had to wait for them to send whatever about a month before maturity and then they could do it.

I called back because the first girl said it would be easy to transfer the beneficiary's to the cd. And I forgot to bring that up in the last call.Instead, they are sending a blank from where I have to enter all the info again.

I think it is too late to start now because money has to be there by Tuesday. But cons of account are:

- hard pull- not easy process to open account- money must be wired (fee from your bank sending it)- account app must be notarized (fee for notary)- not sure how hard to close it after 7 months and get money

I did not wire the money. I used a shared branch. This CU is open Saturday and Monday and you have thru Tuesday. (Although I'm not sure any shared branch near me is open Saturday)

Don't think a local CU will charge to notarize if you are a member. But if you do have to pay, its what? $5? You are making an excess return on the CD. HELLO?

Hard pull is what? 10-15 points max? And how many people buying CDs need to worry about 10-15 points or less? I sure don't. My bigger concern was getting rejected for too many new bank accounts but I didn't. And I wont need another until Jan.

I plan to ACH the money out when it matures, easy peasy.

So yeah, if their rate was not so high, I probably would not have done it.

I agree it's a great rate, but it's making think twice at where they think rates are going. This pretty much smokes Sharonview 4% offer although short in length. I think we will see 5 handles by next year. I would ladder some in if it weren't for the notary nonsense.

hard pull - YESwired money? - I was told to deposit it tomorrow or Monday by check using shared branch (once you have your share account number)notarized? not sure?, I was not informed of thatyou can fax the account agreement signature card which you download after app completion, is this what you were saying needs notary?you can email ACS receipt (which is an email from ACS)email copy of Drivers licenseThe disclosure states: automatically renews to 6 month CD unless you instruct them differentI think that was the whole process.*Had to shell out $$ to join the Caner Assoc., but the rest of it was standard stuff for a CU, just rushed it all to meet a deadline. **** GREAT RATE

Agreed, no need for notary, sent license and ACS direct to the CSR's email account and got my saving acc# during the same phone call. Worst part was the initial clueless CSR who misguided me and the long hold time to speak to a CSR. Couldn't care less about a hard pull as I don't borrow money.

I signed up to open an account today. Went pretty smooth. They do a hard pull and will make two small deposits for ACH transfer. I asked about shared branch deposit but they put a hold on the funds. Is there some reason why anyone wouldn't prefer ACH transfer? So will verify the two deposits by Monday and transfer the funds. Should be a done deal.

With a check, you might gain a day or two or three given it's a weekend. My CD is earning 5% but that check won't likely clear until Monday. That's worth a 2 mile drive to me.

I did not even ask about ach when I found out they had shared branch.

My rep was really trying to push me to wire it in, she said most everyone is doing that because they know they will make the deadline. I insisted on the shared branch.-------------------Off topic:I was able to link it to Mint and it updated.

Ugly, poorly-conceived online application AT BEST! Got through it late this afternoon. Immediately before that, did the VERY straightforward "American Cancer Society Cancer Action Network" application/donation (and seriously - are some posters on this website REALLY bitc*ing about spending the $10 default, vs. some lower figure, like $5? For 5%? Jeez!)

I called Keesler afterwards. I'm basically at about the same level in the queue as rzelman, I think. Got my account (member) number now. Emailed them copy of ACS email plus driver's license PDF. I'm deciding whether early Monday morning to do: 1) the Shared CU Co-Op thing, or 2) the wire transfer thing. Can't do much between now and then, because even though Keesler is open tomorrow (I may call them just to check on status of things), neither my local Shared CU Co-Op nor my bank (if I do wire) is open Saturdays.

I've been assured by 2 different Keesler CSR's now, that I can do it either way - 1) there will be no hold problems if I do check deposit via Shared (the obligatory hold will be transferred to the CD), or 2) either way (Shared vs. wire), any "Notary signature" issues do NOT need to be dealt with before COB next Tues.

RJM - good for you in getting it open. i jumped through hoops and got mine done today(Friday). KEESLER was very good to deal with, and moved the check hold from the Shared Branch deposit onto the CD, and it posted in my account today. - - SO THANK YOU KEN, for this web site and at least letting us know of these small windows of opportunity to chase a yield.

My problem is that I'm a member of a local CU shared branch. But the funds are being transferred into a different local bank by ACH from a Dollarsavingsdirect acct. that I'm finally closing. Dollarsavingsdirect won't allow a second ACH bank without paperwork that has to be mailed in. So I wouldn't be able to do a shared branch deposit unless I moved the funds across town to the CU on Monday. Not sure if there's time for it to clear.

Don't forget to unlock your Equifax account before you apply. I did and it set me back about 24 hours on this deal. I still don't know if my credit is unlocked yet. It's only suppose to take up to 20 minutes to unlock but I'm doubtful.

There is a limit of 4 withdrawals per month from the Keesler share account, but it has unlimited deposits.I'm using two for linking to AA, one for the transfer to the CD and I guess one when they take the $10 donation. So Im glad I did not set up another trial deposit thing because it would cause me to go over.Will wait until next month to link elsewhere.

This is open to anyone living in San Diego/ Riverside counties, Calif. & also available nationwideIts called "Take 5" cd

On the application, it asks if you live in those 2 counties or somewhere else. It states " that's ok" if you don't live in those 2 counties & then click on tab & asks what state you live in. all states come up to join. I read somewhere on the site membership is $5 & you need to open a saving account.Application seems fairly easy to fill out.

I hope this info I found helps others , This website has helped me find so many good rates , I'm just returning the favor.Steve

Thanks but it seems this is a skip for me. 5% here doesn't seem as good. $5000 upper limit plus need to have an active checking account that is actually utilized or an alternative option (savings, CD, etc) with atleast another $5000 earning low interest is not really idle.

" TAKE 5 CERTIFICATE OFFER: Rates are accurate as of 01/17/2018. Early withdrawal penalty applies. Fees could reduce earnings. Offer excludes business and individual retirement accounts. New Money only. A primary member is allowed to open one Take 5 Certificate Account under the same member name and related tax identification number. The minimum deposit required to open the Take 5 Certificate is $500. Certificate opening deposit balance cannot exceed $5,000. In addition to the minimum balance requirements the following conditions also apply: A qualifying checking account with eStatements is required, and must remain active with at least 1 transaction per month, during the certificate term. Eligible transactions include, but are not limited to, Direct Deposit, Preauthorized Payments, Checks, ATM, POS, Debit Card, and Bill Pay. As an alternative, the following products opened within 30 days of the Take 5 Certificate Account date can be substituted for the checking account requirement: a new funded consumer loan (excluding share secured loans and Mastercard credit card account), a money market account, a regular certificate account, or an IRA certificate account. The stated alternative deposit accounts require new money and a minimum opening balance of $5,000. You will have a 30-day grace period to meet the requirements. If the conditions are not met, the 5.00% APY may be reduced to the APY in effect for a 3-Month Certificate Account for the remainder of the term. "

So to avoid having to keep an additional $5k in another low-rate account with them, the only option is to do the checking account. "we offer Free Checking with eStatements—an account that's truly free. Minimum opening deposit of $25 and no monthly maintenance fee", which is reasonable, especially if small automated transfers back and forth from another bank would count as 'direct deposit' activity.

But your total profit on this would only be $100 ($5000 * 0.05 / 12 * 5 = $104, -$5 membership fee), which probably isn't worth all the hassle of multiple accounts at this place ('base share' savings every credit union requires, checking, and the CD) for a one-time thing.

Not hopping on the bandwagon for this one at all. 7 months is too short a term to have to (1) open yet ANOTHER account, (2) jump through all of the frustrating hoops to open, (3) have to figure out what to do with the money in March 2019 when the CD matures, and (4) be stuck with another account to monitor. If the term were longer, maybe. But nope on this one. (Still nice to see it, though, and good luck to all of you who are chasing it!)

I sincerely wish them good luck, too. CDs (yes, more than one) I'm opening right now will mature early in November. Who knows what circumstances will be next March?! You find seven months too short. I find it far too long. I guess such differences of opinion help to populate a vibrant marketplace.

I was a little annoyed at Keesler yesterday after finishing what I still think is not a very smooth online application, but things are looking up today. Called today to check status. One small thing - don't expect the documents you email them (in my case, driver's license and proof that I joined ACS) to show up in that "View Documents" section of their website for applications. I've seen other CU's do it this way, but for Keesler this is mainly for the documents they send us and we send back, and only then do they appear in that section. Today they confirmed that what I emailed them passed muster - apparently they don't email back a "received" notification for these. Or maybe they're just swamped.

I set up my login earlier this morning - pretty straightforward. Not too bad a hold time today. CSR confirmed the 1-per-household limit on CDs, and that there was no upper dollar limit.

CSR I spoke with was one I also spoke with yesterday, and she repeated the 2 promises that many of us are depending on here - 1) that getting the remaining paperwork back to them after next Tuesday will NOT be cause for denying a CD, and 2) for those going the Shared Co-Op pathway, a hold on funds in one's Primary Share Account will NOT prevent the CD from being created. (Instead of "transferring" the hold to the CD and still creating the CD by Tuesday, she said they will let the hold expire, and only then create the CD. If they do that, then a lot of CDs may have creation dates later than Tuesday.)

On those 2 promises, looking back through this thread it looks like only some early commenters had their CSR's saying something different. So maybe we can chalk that up to some initial confusion at Keesler, with the changes they made in the scope of the offer.

Letting the hold expire is a poor solution and I would not accept that even though its what they usually do. Its a poor practice because the member is forced to earn .20% during the hold period.

Other credit unions do not have such Draconian policies. (Nasa & Andrews to name 2)

I insisted that they not wait for the check to clear to open the CD and although it was a pain, they accommodated me. The other credit unions kept the hold on the funds but the hold was in the CD earning the higher rate.This credit union did not put the hold on mine in the CD but that may have just been an oversight or maybe their system won't allow it?

When I opened the Andrews, the shared branch said the hold could be up to 10 days for a large check which is silly but because I knew Andrews would let me open the CD right away and not wait for the hold, I did not care.

I see a lot of posters belly aching about hard pulls. I can somehow manage the 3 point hit I took.But I was not willing to earn .20% while waiting for the check to clear.But, since I did all this Friday, I was not worried about them pulling the deal. Pulling the deal on members in transition would not make sense for a credit union that was nice enough to open the deal up to everyone via the Cancer donation thing.

I hope this deal causes other banks & credit unions to offer high rates even for short terms.

While I would prefer a longer term, I feel confident that in the current rising rate environment I will be able to get good deal in 7 months. Not compared to 5% but compared to the other rates that are available today.

As a general rule, prior to this deal, I had decided to avoid institutions that required BS like a copy of my license and I never would have considered a deal that required a notarized signature. But this rate was too good to resist. And, I have a feeling they probably would not enforce the notarized application thing anyway. But, since I am a member of a local CU and its not way out of my way, I will go ahead & get mine notarized even though its SO unnecessary. It might not be necessary if they were not going to do a hard pull and the 4 equifax security questions. But in addition to those, its extreme overkill.

When I did the application yesterday, Mary told me if the micro deposits for ACH are verified by Monday then the CD wil be opened when the funds are transferred. The CSR I spoke to today who told me the funds had to be transferred by Tuesday at 5 PM. So I called back and spoke to a supervisor who told me anything in the pipleline by Monday will be honored..

I could have waited & combined mine into a few posts but I suspect a lot of people had questions because the deal was ending soon so I purposely posted a play by play because I thought it would be helpful. If it offended anyone, well, that's just a bonus. lol

Can someone who has opened a CD account already clarify a few things. I just want to make sure I can get this CD by Tuesday. I am OK with a hard pull, $10 ACS donation, and am willing to do a wire transfer.

Today is Sunday the first few things that need to be done are:-Join ACS for nationwide access by donating at least $10 to receive a membership email? Correct?-Fill online application noting I am an ACS member? Correct?-Call on Monday? To get email where I can send documents (drivers license, ACS email, and Signature App?) faster to receive account#? Correct?-Once Account number is received I can setup a wire transfer from my savings account near the end of day Monday to have the money wired before end of day Tuesday (8/21/18 when deadline expires)? Correct?

It seems like you have the basics covered. You need your member number and the ABA routing number to wire the funds. Based my experience, KFCU won’t open the CD until the funds are in your account to be able to fund the CD.

It will be tight but possible as long as your wire goes out before 4PM EST on Monday. I would call early Monday and ask the csr for their personal email so that you can send the documents while you are still talking on the phone. The first rep I spoke to gave me the general address which is only checked every 24-48 hours. The second rep gave me the ABA and account numbers immediately after sending her the documents. I would have missed the deadline had I not called again and spoken to the more proactive csr.

Not to rain on anyone's parade, but it seems ridiculous to go through all of this, just for 7 months. I can understand if it was Sharonview (which offered 1%-1.5% above what everyone else was offering) for 5 full years. But 137 posts for something that's basically only for half a year? Yes, there might be a narrow band of people who, if it doesn't take much effort, it might be okay to open. But for everyone else, to me it's just a come-on (like those credit cards that offer 0% interest for the first 6 months, then have terrible interest rates). If it floats your boat, I'm glad. But I can't help but wonder if people would be doing the same scrambe if it was, say for 4 months? or 2? I have money at Sharonwivew that I've had in for a while now at 4%. Jumping through hoops to get 5% for just 7 months? No offense, but I'll pass...

For a $250K CD that is short term, I will get an additional $4375 from what I am currently earning with my brokerage MM account. In March,2019 there will likely be better liquid opportunities to place the $250K than what we are seeing today. I'm happy to take the extra $4375 thank you.

#152 I see about $7300 interest on $250K @5% apy for 7 months. And you state in #150 that you get an extra (your word) of $4375 for MM. Therefore, to earn the "extra" amount of $4375 PLUS the $7300 for a total of $11675 for 7months. Which is about 8% (almost 10%) on the $250K...Again, which MM are you getting an approx. 8% apy?

My rep said I could send an extra $10 with my initial deposit and they would join me in acs. So I sent my CD amount +$15 so I did not have an odd amount CD.I opened the account on the phone with a rep because I found the website buggy.She gave me my account # right away and I assumed,that everything would be sent via snail mail because Andrews and Northern insisted on that. (They can send it to you either way)They key after you send the wire is calling and making sure the CD is opened and not just sitting in the share account. They are not going to automatically put the money in the cd unless you call. Write down who you talk to. And make sure you add your beneficiaries to the CD. Initially a rep said that needed to be signed also but then realized it did not. After that, I think I needed a temp password which a rep gave me? But then I was able to log in online and set up a security word and regular password.

Everyone I talked to and every post I have read says it needs to be notarized.

Nobody has said what happens if its not. Nor did I ask.(I mean the after paperwork, not the account opening)I provided nothing except the questions she asked and the 4 security questions. And the shared branch deposit with my new acct number.They of course did the hard pull too.

We are supposed to send the rest later. Northern has a silly 2 step process. They send stuff, you fill it out, sign and send it back and then they send something else which you sign & send back.

Keesler is going to require a signature card/form and 2 different reps told me they want that notarized and a copy of your drivers license. I did not ask what would happen for failure to comply. Maybe nothing? Maybe we could just ACH out in 7 months without that stuff? I'm probably not going to chance it because I don't want my money held for a week if they were to later demand that stuff be sent in. The rep said my share account is set to receive ACH deposits and withdrawals. And I have two test transactions & withdrawals pending.

RJM - That's an excellent point in your comment # 121, about only earning .20% during the days the funds sit in the Primary Share account waiting for the check to clear. (I was also planning to go the Shared Branch route.) Far better to have the hold transferred to the CD.

I think early Monday morning I'll call Keesler and ask them about this. Looking back through your posts, it looks like it took you some extra effort to get this done. Do you recall which of their Customer Support reps. helped get this done, and possibly which of their supervisors finally approved it? (The CSR I talked with last was "Brandy" in the New Accounts Dept., extension 6545, but she was the one who outlined the "create the CD only after the hold expires" pathway. Aside from that she was very good.)

Also, when you were in the process of getting this done, did they happen to mention HOW LONG a hold they would put on your check if they were NOT able to get it done the way you wanted?

I'll call them before I visit my Shared Branching CU. I still have the option of wiring funds thus avoiding a hold, but then I either have to wire from 2 different banks or else I can't make the CD quite as large as I want.

The first rep I got was Kayla (?) same extension and she was terrific except she indicated I would easily get her back on the phone (after the initial call and her followup call) and I did not when I called back after the deposit. It sounds like 6545 is just a catch all extension for everyone who opened a new acct? But it just sticks you in the queue again?I feared an Andrews like experience where I could not get anyone to answer or return my call all day. But this credit union answers or calls back. The 2nd guy did not know who to go to or what to do, I told him Kayla got approval from someone and then put me on hold several times and then we got cut off. I immediately called back and got back in Queue but he called back in about 10 minutes and said he would do it the way I wanted. He did not say who authorized it but previously he asked who told me they could do it and luckily I wrote down her name & 6545 extension and gave it to him. I think I also mentioned JRose, comment #22 who got it that way. And I pointed out that the hold was not a problem, I just wanted the hold to be within the CD like both Nasa & Andrews had done. I did not ask nor did they say exactly how long the hold was.

But unlike most, Kayla said they would take the donation from my original deposit and that was not immediately done. After I got off the phone with the guy, I got a call back from another helpful lady from my prior getting in queue, Cheyenne, and I clarified the notarization & drivers license requirements and asked that the beneficiaries be added to the CD because I remembered Kayla saying that would be done later and not automatic. Initially, she said she was sending a blank form and I would have to reenter all the beneficiary info and I was a little perturbed about it but then she called back in a few minutes and said she was wrong and that it would be pre-filled out. She offered to send to my email but then said she could do it either way and I opted for snail mail. She sent an email and then a follow up email saying the first email was incorrect. And by then it was after 5 or 6 and I asked her by email about the # of allowed withdrawals per month, I assumed it was 6 because it usually is but I remembered one CU had a limit of 3. She responded Saturday morning that Keeslers limit is 4. (I wanted to set up a link now at another bank in case I later forgot)

It appears the initial hold is set to expire 8/21. Mine only shows $10, I guess because the $5 must remain and the rest went into the CD. (The CD does not reflect the hold like I recall elsewhere) The $10 hold could also be for the ACS donation?.I only see this when I click on "notes" 1 Pending and a popup comes up.Transaction Date Expiration Date Type Description Deposit Withdrawal8/17/2018 8/21/2018 Check Hold $10.00---------------------------Also saw this .....

On August 22, Keesler Online will launch an updated look and feel designed to make your online banking experience even better. This change only affects the site’s appearance and usability - all functionality, features and services that Keesler Online is known for will remain the same.Here's What You Can ExpectKeesler Online will be unavailable much of the day, August 22. All scheduled transfers, ACH and bill payments set for that date will still process as usual. The mobile app will still work while Keesler Online is unavailable, and you can call the Member Contact Center for help, but be aware that wait times that day may be longer than usual.Once the upgrade is completed on August 22 and you log into your account from the Keesler Federal Home Page(opens in a new window) , you will notice:

A more streamlined layout

Consolidation of some menu options

Quick widgets to conveniently access features you use most often

NOTE: Although the updated Keesler Online features a design that gives the site a consistent look whether it is accessed via computer, tablet or mobile phone, weHIGHLY RECOMMEND using the Keesler Mobile app for the best experience on your mobile devices. If you are not already using Keesler Mobile, free downloads are available below on the App Store or Google Play.

RJM - Thanks for your help. As I posted below in more detail, I had my CD started today, and any hold is on the CD itself. As it turns out I was possibly overly concerned about the hold - as I found out earlier this afternoon, when the checks I deposited were in my Keesler Primary Share account, they were only showing a hold until 8/22/18, which would not have been a big deal to me. What annoys me is when financial institutions slap 1.5 or 2 week holds on - I've actually had that happen. Before today, I didn't know if Keesler was one of those pirates or not.

Finally got my account open. They're being lenient on when the account gets funded...as long as the account is opened before the deadline the funds/paperwork can be done later. So if anyone is on the fence over this deal, the process seems to be getting streamlined. I had to email Sade a copy of my drivers license while she was on the phone but that was it. Wire transfer will happen tomorrow.

Sade was the CSR who expedited my application in the same manner. Other agents have misdirected the documents to the general email address which could've caused you to miss the deadline.Keep in mind that the transfer of funds from the savings to the CD is not automatic. You must call on Tuesday after the wire in received to instruct them to make the transfer. Don't assume that it will be done or honored otherwise!

Have you asked specifically if it can be funded after the Tuesday deadline? I called earlier and it didn't seem that it's possible...they said the wire has to go out on Tuesday at the latest...or ACH the same.

That's not what the CSR just said on the phone, she placed me on hold and 'checked with a supervisor' and said that funding needs to happen tomorrow (Tuesday) at the latest. They are willing to take 'proof' that a wire was sent out tomorrow even if the wire clears Wednesday.

I decided to transfer 1M from a Marcus acct which earns 1.85% to open 4 CDs x 250K each (structured beneficiaries for insurance protection). But the transfer from Marcus is 'in process' because it had to go through some approvals.

No go on the multiple CDs...must be one per member is the latest they are saying. So if you have multiple beneficiaries you can't structure them for insurance protection purposes.

I could have my wife sign up as a member with our vacation home as a separate address but it's too much headache so I have to decide whether to do anything more than the 250K limit for insurance purposes.

If you have multiple beneficiaries, why would you be limited to $250K insurance, even if you can only open 1 account, as opposed to $250K * (# of beneficiaries)? Are the beneficiaries only you and your wife (in which case it makes sense that 4 accounts would provide $1M insurance)?

Yes, I was clear they only allow 1 CD. What I meant was I could see why you'd want 4 CD's for $1M insurance if 4 CD's were allowed (as you'd previously thought) and if you and your wife would be the only owners and beneficiaries. But if you have additional beneficiaries, I still don't understand why you can't get more than $250K insurance, e.g., if you list your wife, mother, and father as beneficiaries, wouldn't that give you $750K insurance with only 1 CD?

No, I think it's $250K insurance per beneficiary combination...I'm pretty sure I researched it with PenFed ~4 years ago. Any combination of individual and/or beneficiary can get up to $250K per account/combination. So if you have 50 beneficiaries you don't get $250K per beneficiary (in other words you can't have an astronomically large CD with full insurance = the max insurance is always $250K per CD).

Daniel, you need to do more research. What you said is totally wrong. You are allowed up to 5 beneficiaries for each CD or $1,250,000 per CD. If it's a joint CD with your spouse, it could be $2,500,000.

Daniel, did you try to verify your understanding about insurance being limited to $250K yet? Both Keesler and NCUA stated that $250K insurance per beneficiary was available. For example, you can open a joint CD with you and your wife, naming 2 parents as beneficiaries, and get $1M in insurance (or as noted by lou, $2.5M by listing 5 beneficiaries). If you want even more than $2.5M, I believe that should be possible also.

Because as my businesses post profits and I get withdrawals I need to dump them into a 'savings' and that's where the savings is at...once in a while such as now I will do a market sweep and invest it in locked term CDs.

I'm not much of a stock market guy and I've lost money big and small every time I've invested so I'd rather have preservation of capital over everything else.

I agree. Nothing wrong with playing it safe. And the market is in a bubble. If there's a good correction, then it would be possible to get in with less risk. And you'd be getting in with more of your capital than people who lose during a correction.

Beth, presumably you meant only the share account must be opened by Tuesday (since the CD can't have more funds added after it's opened), but the full funding of the share account and opening of the CD need not happen by Tuesday? Was it Sade who said this about being lenient and do you know if a supervisor confirmed it? It seems like almost everyone else here has been saying all deposits must be received by Tuesday (even if there is a hold) so the CD can be opened Tuesday (except I think someone said a wire sent Tuesday could be ok even if it arrives Wednesday).

The CSR I spoke with Saturday indicated I could wait till Tuesday to ACH from external bank to fund CD. But the CSR I spoke with Tuesday morning (today) claimed that the funds had to be in today and ACH today wouldn't arrive in time for COB today. Seems odd in this day and age to have to go get a paper cashiers check from bank then drive to a shared branch to deposit. Wish all banks were as easy as Ally on electronic transactions.

Go figure a 5% CD deal pops up while I'm away! lol Oh well congrats to those who got this opened in time. I see some folks complaining that this is only for 7 months but it's better to stay short in this environment anyway. Hopefully we will be seeing more of these 4-5% CD's soon.

Not enough time RJM as my liquid cash is in GM right notes and must go through Redneck first and then to Keesler even by wire. No biggie as it looks like they are doing a hard credit pull and I'm about to do 2 more 0% no fee balance transfers soon. I have also been earning 5% for 2 years with Insight and Netspend anyway.

@Daniel comment#211: Netspend limits you to 5% on $1,000(used to be $5,000) and only .5% over $1,000. I have 10 of those so that's $10,000 @ 5%. Insight had a $5,000 initial limit but also pays 5% over 5,000 as well plus a daily compounding method even though interest is credited quarterly. I had 8 of those but they closed 2 of them(opened online) so it dropped from $40,000 to $30,000 plus around $4,000 in accrued interest. All totaled I still have $44,000 earning 5% currently and that is still growing and compounding daily on the Insight side for as long as it lasts.

Netspend limits you to 5 cards per person which include Nespend, Ace Elite, Western Union, H-E-B and Brinks. I have 5 for me and 5 for the wife. Insight had a max of 4 cards per person but they have shut down the 5% savings account that were opened online. The Insight deal looks dead for new accounts unless you open one at a partner location and I'm not even sure about that. I have them in set it and forget it mode with $1 monthly ACH transfers they are fee free and cost nothing to maintain. The initial set up was a bit of work but rates were next to nothing in the bank over 2 years ago. If 5% CD's like this were available I probably wouldn't have bothered.

I think he was referring to CD's not a passbook account. For a short time there were CD's paying that high in the early 80's possibly. I remember a regular savings account I had was up to 10% for a short time.

I was able to go through the application process online Sunday night and get the account activated and funded less than a day later, Monday afternoon. So it's not too late.

To expedite the process, when you have finished the online application, print and sign the documents. Donate $10 to ACS and print confirmation. Scan your drivers license along with the proof of ACS donation, and the Keesler documents.

Call the bank and you will hopefully can a rep as cheerful and helpful as I did. Email the docs while you are on the phone. The rep will call you back with your new account number and routing number. The only slowdown I had was that Keesler wanted me to go to any local credit union shared branch and deposit a token $5. This was all accomplished smoothly.

Lastly, contact the bank where you have your funds and wire the funds to Keesler. For me it was worth the $20 wire fee to get the 5% rate and not have to worry about whether I'd make the deadline waiting for an ACH.

Best of luck and thanks to all here for the great comments that helped make this happen smoothly.

Hold times on Monday afternoon are 25 minutes. The phone menu is tricky and I keep ending up in the general (non banker) queue which was another 10 minutes. The phone rep told me that the direct extension for the banker line is x6545. You know you are in the right queue if they keep asking to take your number and call you back in the order received.

Bank wires are not instantaneous always. I was informed by my bank that my wire went out at 12 noon EST and it was not received by Kessler until about 3:30 EST.

I was told that this deal ends on Tuesday at 5pm CST and they sounded very firm about that.

Hold times on Monday afternoon are 25 minutes. The phone menu is tricky and I keep ending up in the general (non banker) queue which was another 10 minutes. The phone rep told me that the direct extension for the banker line is x6545. You know you are in the right queue if they keep asking to take your number and call you back in the order received.

Bank wires are not instantaneous always. I was informed by my bank that my wire went out at 12 noon EST and it was not received by Kessler until about 3:30 EST.

I was told that this deal ends on Tuesday at 5pm CST and they sounded very firm about that.....

Wires typically are received the following business day after being sent. The Keesler rep also told me that their wire desk only posts incoming wires periodically so to be sure and check back throughout the day to see when it is credited to the saving account. A 3 hour turn around for a wire is amazingly fast and not something I would assume to be the norm!

A lot of waiting on hold and moving funds from several accounts to grab this deal, but I am finally in! 5% percent is killer in this marketplace. Also fortunate to have locked in the Sharonview 4% CD a while back. Now looking at the AchievaCU 4.2 % IRA. Was supposed to get a callback, but nothing happening.

Just deposited my checks for the minimum of $5 for the savings account and the 7-month CD Special at a local share branch. Got a phone call from a Keesler CSR to my cell, as I was pulling into my driveway, to open the 7-month CD Special with the check just deposited. Awesome service!!! Can't get better that. Ken, thank you so much for posting this fantastic deal!!

SYC, your experience was a deja-vu of mine. Decided this morning on shared branch as opposed to a wire. At that branch I deposited checks to my Keesler Primary Share account (I haven't opened any others yet). Got home, about 10 minutes later got a call from a Keesler CSR I'd talked with last Friday. Note - he called on what seems to be his personal cell, so for others who may get calls like this, don't be surprised if the number you are called by might not be one associated with Keesler. (Of course, this is also a reason for using a little more scrutiny before proceeding, which I did.)

Based on SYC's experience and mine, I wonder if, during this special at least, Keesler's system automatically notifies CSRs when a customer who's said they want to start a CD makes a large deposit to their liquid account? If so, it's a nice touch.

I expected to have to try to insist that any holds be put on the CD or transferred to the CD, so my funds would not sit in the liquid account for days earning basically nothing. (Much discussion about that earlier in thread.) But a pleasant surprise - no insistence was necessary. The CSR was already prepared to do that, and to create the CD right then. He did so (this took maybe 10-12 minutes hold while he contacted others), and now I see it online, showing opened today and earning 4.95%.

So overall, not a terrible process. I was frustrated earlier by a couple of things, and some of their CSRs were saying things a couple of days earlier that turned out to be different than what happened, but chalk that up to their changes in the scope of this, plus the CSRs are learning too. I get the idea that Keesler, like nearly all CUs, doesn't do this type of thing every day.

So, thanks to all the DA posters who provided help, and to Ken for providing DA.

I had a CSR tell me that ACH transfers are limited to $5K/day. Is that what you heard? The extra layer of security never bothers me. All you have to do is check the box to remember your computer and you can eliminate this layer.

It keeps asking me every time also. I assume you never found a solution for that.

So did Penfed specifically claim there was a $5K limit for Penfed pushing or another institution pulling (i.e., they were not talking about the limit for Penfed pushing or Penfed pulling)? I don't recall encountering any bank so far that has imposed limits on ACH pushes or pulls initiated by another bank (but every bank has imposed limits on ACH pushes and pulls they initiate). Have you ever encountered any institution that imposed the former kind of limits?

I've logged in maybe 6 - 7 times now, always via a PC not a phone. Only twice did they request that I enter the email confirmation code or answer a security question. Both times I chose the security question.

Started the process last night at 5:30pm CT and just got large $$ CD funded by 3:30pm CT via wire. Keesler staff and CSR's could not have made this any easier IMO. Great overall service at Keesler. This website saves the day again. I will earn thousands more with this deal, even on a short 7 month investment period. Well worth effort the.

219 posts...as alluded to before...what's going happen in 7 months? A higher rate and longer term with new money required? OR higher rate/term only for those that have an expiring 7 month CD? Obviously, something will need to brought out and perhaps only in 6 months or its BK time, and that is not a hamburger brand! Did anyone ever look at the financials and make their own analysis?

Nothing, are you concerned there is any meaningful risk of loss or delay in getting funds back promptly (for amounts within the insurance limit)? I'm trying to understand how/why they are paying so much more than everyone else.

I'm amazed about the lack of concern about the payoff and ability for same...when this rate is over 1+% of the competition? What is the issuer going to do with the funds for only 7 months? Why is the NCUA sitting on the sidelines (or did they issue an offline/private requirement for more funds? Read about the purported NCUA letter to PenFed about two weeks ago and why PenFed is "slowing" down)...what if more offered this rate and some experienced a problem in meeting their obligations...what happens to the insurance fund, timely payment, etc. Everyone seems to be focusing on the near term for such a good rate (on the face of it!)...why isn't the cu posting (here) why it need "so much funding" for only 7 months...interesting it is very silent. To you?

This is a good deal if you just happen to have $250,000 lying around in a liquid bank account at a very low rate, and you don't need any of the money for the next 7 months. Most of us do not leave that much money sitting idly in a bank account at any given time. So for a few people it's a good deal, for the rest of us it is not a viable option.

Not completely correct, Lou. For example, the funds I moved to Keesler (now earning 5%, for 7 months) were previously earning 1.75, 2.26 and 2.50 (the latter a smaller Rewards Checking acct.). Does that meet everyone's expectation of a "very low rate"?

And I still have "dry powder" (no-penalty CDs) earning 2.40, waiting for upcoming events, including equity downturns. If necessary.

I'm not going mention exact amounts in a public forum. However, of the amount I funded the CD with, 60% was previously earning 2.26 in a liquid account (which guarantees that rate until summer 2019). About 8% was earning 2.50 in a "rewards checking account". None of what I used for the funding were no-penalty CDs.

Lou, CDs have been paying so terrible in recent years that I have stuck with shorter durations rather than locking in 5 years at a low rate. Finally things are turning up so after this deal I will start to look at longer durations.

One generally accepts a lower rate for reasons of security and liquidity. The alternative of low interest rate bonds or taking new positions in stocks which are at record highs is not particularly attractive to those whose goal is capital preservation

I did not have $250k but I had a lot. Why? Because I anticipated better deals ahead. And 2.26% in a liquid account was not a bad place to be.Although I never would have guessed a 5% 7 month.I was contemplating the 3.15% 18 month and the 3.43% 30 month but they both ended before I bought them and I am glad.

While I am glad to get this deal, I can't help but think it was poor planning on Keeslers part. I would think they could have planned better such that they would not need to pay 5%.

It will be interesting what they will make available in 7 months to all the money that flowed in for this deal. From what I can tell, other than this one, they do not have anything else that is competitive.

I got this finally set up and put in $250K just because I didn't want to risk any principal and getting more in would have been quite a headache.

They actually gave me a waiver because funds were not available in time from my side but at 4:50 PM EST yesterday I was on a call with Goldman and Keesler on the other line confirming a wire was being sent and a confirmation number that they could enter in their records.

Today I think Keesler is closed so hopefully somebody is not just cashing out all these new investments and running off ;-).

It was a little bit of a pain to open, including fraud verifications for a wire into a new account but it's a 2.92% return for the 7 months and ideally there would be good options to move that into next year.

But then why would they have extended it and relaxed the membership/eligibility requirements to nationwide with a $10 donation?

They were probably looking to raise some funds and due to interest they probably realized that a much larger influx can come in that they can use for other purposes/loans/etc. Hopefully it doesn't backfire ;-)

They probably decided to open it nationwide because they weren't raising enough capital investment from the local area. The area has always been depressed. Not much down there. One of the managers told me they were raising capital for Jackson Ms area.

Same here, I got in with about 2 hours to spare. Ally took forever to get things going. Once I was dealing with Keesler and not Ally, things went smooth. Lots of hoops to jump through for this one, but it is worth it for my present situation.

I'm still waiting for the ACH transfer to go through. I'm starting to see why it takes so long. Took the weekend and two business days for the micro deposits to appear and then will take two more business days from yesterday to fund the account. Online banks are usually next day. Keesler seems to batche in/out the transfers around 9 am. So a day is always lost.

I'm getting an error code and so is the other guy. Not sure why. Tried to ask via chat but its not manned. Asked by email but im sure they will just tell me to call them. SMH.If I wanted to call, I would not have left a message. Duh.

They are probably busy packing the received $ into suitcases. And checking the flight is on time.

Reminds me of these Caribbean banks that used to offer a 7% return when the market was at the 3-4% mark. You want to offer high enough that people are drawn to you but not that high that it sounds like a scam. In the end it was a scam.

"I know it's not a scam" Opinion verses Fact. What is the CU doing with this "great" influx of funds for a short period of time? No "opinion" on why nothing can be located or is posted...anywhere??? What is their business model characteristics that allow this short term borrowing/lending...want to replicate it!

Who here wouldn't have invested the total amount they did had the rate been 4% rather than 5%? I assume no one. Wouldn't a savvy FI realize this? Maybe it was a scam, and many of us will be sending out our resumes again when that becomes evident.

I mean no one's even speculated about what these funds are being used for that they'll likely be returning to investors in a mere 7 months (plus 5%), - assuming the funds are still around. Pure curiosity here, - but suppose this were really a fraud. Could we sue DA in some fashion?

I don't view buying CDs as "investing". I have been investing for a long time and investing implies risk of loss. Buying CDs do not. And its a really, really long stretch to think anyone loses money on this deal.

Why would you think it's "troll talk" to wonder if DA ever unwittingly wrote up a scam offer whether they would be potentially liable for any member losses of those who relied on that published information to open accounts?

As I recall "the private letter" was buried/referenced in another article (not primarily about PenFed) that was either in the USA Today or WSJ...ask PenFed and see what they say...clearly they have not been "as aggressive" as they use to be!

Nothing, for money within the NCUA insurance limits, how much risk do you think there is? I assume that if the CU has serious financial problems, the NCUA would provide immediate relief? But is there any realistic risk that the money could not be released promptly, where the NCUA would not provide immediate relief if the CU’s overall condition is ok? I’m still puzzled why they offered such a high rate.

I asked who has done a financial analysis...I didn't see one except some summary statement as to the "billions" on its balance sheet...that is not what I'd call a financial analysis even if only by a layperson. Those that have money in there will find out in 6 or 7 months...perhaps NCUA was/is asleep at the wheel...we shall see. Insurance is nice but not doing due diligence is not justified by insurance...in my view. And, why isn't PenFed being aggressive as it use to be? Perhaps others will follow....

nothing, you were asked to provide names of those worthless, ncua insured annuities you claimed exist.

why would anyone do a financial analysis before buying a CD from an insured credit union?

Here's a hint. These CDs are for seven months. There are billions of dollars in longer term debt. These CDs will be repaid before all those billions in other liabilities. That is why the other liabilities matter.

userjohn, to answer your odd question, don't expect any help from the NCUA if a credit union is in good shape, why would there be?

You said the annuities were ncua insured. The news reports referred only to an annuities fraud, i. e. Did they do any due diligence? Hope you are “right” about the viability but wishing/hoping normally won’t do it! BTW what is the credit union going to do with millions in CDs due in 6/7 months...oh, I forgot that you only look to insurance.

Nothing, you made some vague claim about annuities and you were asked why that is relevant.

userjohn, vague anonymous comments are a waste of time. which small credit union refused to close someone's CDs? How is that relevant here, Keesler is not a small credit union. NCUA does not "help out" it provides insurance in case of credit union complete failure.

Free Dumb, although I’d like more details from SmallCU, I’d have the same fundamental concern without that comment, which is that I've not seen any good explanation why Keesler would pay such an outlier rate with no cap. Does anyone here know how often other similar (this much better than everyone else) offers have been made by financial institutions and the outcomes? SmallCU’s vague description of the unspecified CU as “small” seemed unimportant, as institutions much larger than Keesler have acted improperly. Various people here have said they are relying entirely on NCUA insurance, not the CU’s size or financial condition. The NCUA does help in ways other than paying insurance upon complete failure, as they have a broader mission to provide supervision and regulation and protect consumer rights, but I specifically focused on immediate relief, such as payout upon failure, or takeover by another CU before failure, because I’m much less interested in help after lengthy regulatory action or litigation

Free Dumb, I already asked specific questions, which you apparently can’t answer. Most importantly, you’ve provided no explanation why the CU would pay such an extraordinary rate. You’re the one “all over the place”, responding to nothing “For a 7 month CD? What else do you think matters?” (i.e., only NCUA insurance) but then also arguing about size (which is irrelevant if only NCUA insurance matters), and making the false claim that the only help NCUA provides is insurance payout on complete failure. Given your logic, you’d have no additional concern if the rate were 10% rather than 5%.

userjohn - It would not occur to me to ask why a financial company pays a certain rate, it is not relevant in this case.

You responded to an incoherent comment about the size of a credit union, which, of course, is not relevant. I surely never said size matters, I have simply asked why you think it matters. Glad you understand it does not.

Yes, 10% would be just fine with me, would not hesitate, as long as NCUA confirms the credit union is insured.

Free Dumb, I never thought the CU being small was important. I quoted SmallCU only to reference the alleged behavior of failing to pay, not size, which is why I said nothing about size concerns in my own original comments.

So you would have absolutely no additional questions and not even "hesitate" no matter what the rate (e.g., 20%, 100%, or more)? It seems like common sense that additional questions are appropriate depending on how inexplicably high the rate is (even if there may be room for reasonable disagreement about whether this particular 5% rate is high enough to require much questioning).

Free Dumb, if you now realize you were mistaken in claiming the rate is entirely irrelevant (which is obviously false), then what rate would be sufficiently high to cause you any additional questions or hesitation? I mentioned 10% as a preposterous rate that would clearly be high enough to merit additional questions, but apparently that wasn't high enough for you.

big words, I think you misunderstood me. I did not expect the NCUA would provide immediate relief if the CU’s condition were ok, so I was wondering how much risk there was of a failure by the CU to pay promptly in that scenario. I'm primarily concerned about that scenario because if the CU is failing, presumably the NCUA will provide immediate relief (which is why you said financial analysis should not be needed). In SmallCU's situation (“For those who were lucky to open the 7mo CD, I guess they will give you run around to close it. It happened to me in a small credit union…”), I’m assuming the CU was not in bad enough condition for the NCUA to help, but more details from SmallCU would be nice.

Thanks, I located the WSJ article that mentions a regulatory warning related to PENFED’s acquisition of 13 smaller credit unions within 20 month period from 2015 to 2017 and PENFED’s response that it was well within regulatory guidelines. It also contained a rumor that PENFED had declined to make loans that Beloir FCU would have made prior to acquisition by PENFED and that PENFED told former BFCU employees to stop baking cookies for customers. :-)

Still waiting to be get the CD funded. CSR says the system didn't allow the ACH transfer. Couldn't say why. Then she tried Western Union Speedpay but says it wouldn't work either. Now waiting for call back since yesterday.

I called because I had not gotten the signature card. She is sending it out. Apparently they forgot.I used the opportunity to ask again about the notarization and pointed out that I thought it was overkill given the credit report and 4 identity questions. At first she said they needed it but then got a 2nd opinion and said it was not needed. Did not ask about the drivers license but I am not going to send that either and see what happens.

To be honest I had all my stuff ready to send in and then I called and they didn't even ask for the signed application or driver license...once the account shows up correctly I will have those on stand-by in case they get asked but they went through the credit report, SSN validation, etc. so why is the other stuff needed? The DL number was requested as part of the application so this would just be a picture ID to satisfy the patriot act?

RJM, you give every indication of spending every single day from morning to night either tracking your accounts, or cataloging on DA with excruciating detail your every thought and action in regards to doing such.It's like a reality show.

gregk - First of all, my own assessment is that RJM's posts have been very helpful. For one thing, he dived into this particular deal just a little before some of the rest of us did, therefore his information about his experiences was quite useful to several of us.

Secondly, I have to smile just a bit at your "reality show" comment. If RJM is doing a reality show, you seem to be among its biggest fans - noting every post, offering critiques, etc. Or perhaps, as another poster said above, just "rationalizing regret".

Well, I never said RJM's posts aren't often helpful (they are), nor were my comments made with any derision or exasperation. Just an expression of curiosity and some wonder over his omnipresence here, and meticulous attention to every small detail of both his personal financial circumstance and the account mechanics of all the bank and credit union products we consider, together with the impulse to lay it all out for us in such an ordered and all-encompassing fashion. I mean, it's astonishing that fully 60 out of the 278 posts on this topic alone are by RJM, and in terms of word quantity the percentages are even more lopsided. It's truly a virtuoso performance, and in no way am I suggesting he stop, nor unaware of some irony in the verbosity of my observations concerning it all.

I for one appreciate RJM's posts and those of many others here on DA that provide much needed and useful information regularly. The devil is in the details as they say and when it comes to all things banking and financial all those little details can mean the difference between success or failure.

I am very new to this community of conservative fixed-income investing. IMO, folks following these threads should be thankful to those willing to spend their time doing research and posting for the benefit of others. It seems to me, the purpose of this forum is to multiply your efforts by sharing information and knowledge, so each of us as investors can benefit from someone else's post, and others can benefit from your posts. And some folks get a real sense of accomplishment out of helping others, so they spend more time doing so, and should never be discouraged.

One of the biggest mistakes you can make is to take everything you read on any internet forum as fact. Particularly when it comes to acting on advice from complete strangers on matters concerning your own safety or financial well being.

I finally did a shared branch deposit. All week CSRs were telling me it can't be done until the account is funded. Meanwhile everyone here was doing it. I finally got the best CSR I've had. Now I understand how it works. Credit unions are great. I have a good one but I need another local credit union. I'm a former DEC employee. But DCU has bad reviews?

I agree. Fear not. Before, during, and after the financial crisis, Interactive Brokers was offering it's own private placement notes at 7% even when rates were near 0.If you can read financial statements and understand them, there was no reason to avoid these.With a CU, you jump first and ask questions later. I had a number of banks and CU's that were seized during 2009 and 2010 and I received a check for my money within a few days.

Someone at Keesler made the surprising claim (which I’d never heard before) that beneficiaries must be close family members in order to qualify for $250K insurance each, but NCUA said there is no such requirement and qualified non-profit beneficiaries should also be covered. I assume no one here has heard of such a requirement either.

https://www.irs.gov/charities-non-profits/exempt-organizations-business-master-file-extract-eo-bmfThere is also a search tool listed:https://www.irs.gov/charities-non-profits/tax-exempt-organization-searchHere is how it works:https://www.depositaccounts.com/blog/2011/05/maximizing-your-FDIC-coverage-with-beneficiaries.htmli.e. A joint account with 5 beneficiaries can be covered up to $2,500,000.

In my experience it's almost always a complete waste of time to try and talk with bank or CU reps (even at the managerial level) about the provisions and rules of deposit insurance about which they typically have no more than a very primitive and merely generic understanding. Don't bother. Just make certain you have your own independent grip on how coverage applies to the situation you're in and establish the accounts accordingly. It's unnecessary that anyone at the FI comprehend what you're doing, and attempting to engage with them over it will result only in exasperation.

I always believed management at banks and CUs on any level have more important work to do, along with CSRs, than to explain FDIC and NCUA insurance programs when that information is easily found and clearly explained on the appropriate government websites. Even giving examples of different coverage scenarios and interactive work sheets.

gregk, I didn't realize misunderstanding of NCUA and FDIC insurance was so widespread among CUs and banks. Keesler confirmed they were mistaken. What's more amazing is that even a NCUA representative greatly misunderstood their own rules and I had to point out the correct information I had read on their website (which they later acknowledged was accurate).

The real problem is that sometimes-nasty "interface" (for lack of a better word) between NCUA rules and the CU's rules. For example, you can and should research NCUA rules well enough to learn that POD beneficiaries need not be relatives, no matter what a CU employee tells you. But the real problem comes if the CU has a policy of simply not allowing POD beneficiaries on their CDs, or their other accounts, or perhaps limiting the number of POD beneficiaries to a very low number (say, 1). As with several NCUA rules, NCUA specifies what must happen IF a CU chooses to offer a certain functionality, but not that the CU MUST offer that functionality to the customer.

A somewhat similar situation is with POD beneficiary Social Security numbers. Some customers object to a CU requiring SS numbers for POD beneficiaries, but that doesn't stop some (but not all) CU's from doing it. That tells me that the NCUA has neither a rule that SS numbers MUST be required, nor one that they must NOT be (because in this case the CU would assumably be prevented from asking). Also, a CU cannot change the NCUA rule that says each additional joint owner gets (basically) another $250K in insurance, but a CU CAN definitely limit the number of joint owners allowed on an account, and possibly may be able to restrict the account to just a single (primary) owner.

It makes me wonder, regarding the example mentioned above - would a CU be able to have a restriction that POD beneficiaries be members of that CU, or even relatives of the customer?

111, that’s really interesting. I didn’t know CU’s can restrict the number of beneficiaries. Given that, it wouldn’t surprise me if they could restrict the set of permitted beneficiaries. Keesler claimed that the incorrect information about a requirement that beneficiaries be immediate family members used to be a NCUA requirement and no longer exists, so they weren’t trying to add further restrictions to the NCUA rules.

Keesler said there is no written document describing all the terms of the 5% 7 month CD. Is that normal and permissible for a CU CD? Has anyone else here received any such document? At least for banks, I thought there were formal documents for everything.

Did everyone here who opened this 5% CD do it by phone, and did Keesler say you had to sign a form and return it within 30 days after the CD opening? If so, what was the title of that form? Did they also send you a Truth is Savings document, and if so was it identical to the one linked above in this post but with an effective date and term and dividend rate and APY for the CD filled in on Page 1? Were any other documents relating to the CD terms provided or signed forms required (other than the beneficiaries form if applicable)?

I don't recall getting a truth in savings document. But I might not have paid much attention because I can see when I log in that I am getting the 4.95%

I got a beneficiary document that I signed and I guess the account opening document that I also signed. I got them in different envelopes but returned them in the same.

I think the cover letter asks for a copy of your drivers license and wants your signature notarized but on my last call, I pressed the rep on if those were "REALLY" needed because they already did a credit check and the 4 security questions. I said it seemed like overkill. At first she said they were required but then got a 2nd opinion and said just sign & return it and I would be fine. So that is what I did. Went out in today's mail. What I did not do is write down the reps name so they may end up sending it back. I hope not.

My guess is the drivers license and notarized signature were required from BEFORE they started doing the hard pull and the security questions but most of the reps don't know any better because they were taught that way and not retaught with the new data.

I also got a "free gift" in a different welcome envelope. Its a Keesler refrigerator magnet."Important to YOU. Important to US" is their motto on the magnet.

I received three documents, - the Share Certificate Agreement (with all the pertinent information about me and the Certificate terms), a Designation of Beneficiary form, and a Signature Card to certify the Agreement.

gregk - The first of the 3 forms you mentioned receiving, the Share Certificate Agreement - did that one actually have those words, "Share Certificate Agreement", printed at or near the top of the form? I ask because I don't seem to have received that one yet. However, my "Designation of Beneficiary" form for the CD does list, as you put it, "all the pertinent information about me and the Certificate terms" - for example, the 5% APY, the 7-month term, the balance, the maturity date, and the fact that all dividends will be paid at maturity.

So, I'm not too concerned that this is an invalid or fraudulent offer - I'm just wondering where my Share Certificate Agreement form is.

Yes, the "Share Certificate Agreement" I received is titled as such at the top of the form. To be more precise, at the very top of the form is listed "ACCOUNT STATUS CHANGE", and then just below that is "Change Request: Share/IRA Certificate Agreement" followed by all the terms of the CD (i.e. account#, date issued, term, dividend rate, APY, maturity date, etc) and my own personal info.One curious thing, however, is that the space for "Amount" is left empty (in my case) which is a bit unnerving (do others who have received this form see the amount of their deposit there?). Unlike the "Designation of Beneficiary" form you received, my copy shows only my personal info and the Account#, without all the CD terms you see. The balance in my account I see online is accurate, but it's weird that nowhere in the documents I received is that indicated.

gregk - Thanks for the info. In looking at my forms again, I see that I wasn't paying attention before. I DID indeed receive that "Share/IRA Certificate Agreement" - earlier I saw the "ACCOUNT STATUS CHANGE" line, thought it might be something else, and didn't read any further. Dumb. That means what I said about the beneficiary form is incorrect too, because I was actually looking at the "Share/IRA Certificate Agreement" form when I wrote that.

In any case, my "Share/IRA Certificate Agreement" form indeed DOES list the amount of my CD, in that first box, and it does match the amount I see online.

If I were you, I'd probably give them a call or chat next week about that blank field. One assumes they would be able to send you a corrected form. But based on my experience and what I read earlier in this thread, I still think that due to being swamped, Keesler has made a few fairly small errors that will turn out to be non-critical.

Should you be worried? Well, if you telephone the credit union and they advise you you're not earning interest on your deposit then, yes, you should worry. Otherwise, if they tell you there is interest accruing in your account, then I do not believe worry is appropriate.

Of course, this couldn't be correct if you'd requested distribution of monthly interest checkpayments, instead of compounding, for example. However, I'm not sure that payment option was available for this deal. If you're still concerned, I'd give them a call, as reader QED suggests!

Regarding the dividends being paid at maturity, one of the Keeler CSRs told me this when I was funding the CD. Also, it's mentioned on the " Share/lRA Certificate Agreement" document that everyone has hopefully received by now.

Turned out to be kind of icing on the cake for me, since I'm looking to push income into next year (and pull deductions into this year), wherever possible.

Just as I feared. I got my paperwork returned and they are insisting on the notarized affidavit and picture ID as well as a wire/funds transfer agreement which asks for a password and a payment order limit. I guess we choose our own limit?

And of course, I did not write down the name of the rep who told me I did not need to send that stuff in. Or maybe I misunderstood ? But I don't think so.

Just FYI - for those who no longer have accounts with local banks or CUs, often the public library and/or the local police station makes it a point to have a notary available. That's true in the small city where I live, and their services are free to residents.

RJM - "Is that [form] needed to ACH out when it matures from an outside bank or broker?" Good question - I don't know for certain whether it is just for wires or also covers ACH transfers. And if it covers ACH transfers, does it also cover (limit) ACH transfers initiated from the other financial institution? This is rare, but it does happen. In my online application (if I remember correctly) there was some point where I was forced to choose a "Maximum Dollar Limit per Funds Transfers", and as I interpreted this, the largest amount I could select was $50K. So I selected $50K. So days later when they mailed me documents, these included a "Wire/Funds Transfer Agreement" form, with data pre-populated (including the password, by the way), including that $50K limit. I called and asked about this - they said it was no problem to increase this limit, and they emailed me a PDF of a blank form.

When I sent them back several forms a few days ago, this was one that I chose to have notarized (not sure if it was necessary for this one or not). Since my data was already pre-populated on the original form they mailed, I chose to just cross out the $50K and write in a much higher number which more than covered my CD, then signed and dated it. I'll probably wait a few more days then call and confirm with them the higher limit, ask them about ACH transfers, etc.. (Hold times are back to normal now.)

When this CD ends, I definitely want to have at least 2 "exit strategies" available, including wiring funds out (in one shot), and ACHing funds out, in as few shots as possible.

I got a dedicated notary form which was unlike one I had ever seen before. It did not have a place for me to sign just the notary. As for the password, I just used my security question answer.

My local CU took care of it and a copy of my license too Today. Still wonder what might have happened if I just failed to return any of that stuff. My guess is nothing and I could ACH out when the CD matures.

Does anybody find it strange that there is no money posting in the CD either monthly or quarterly? I called Keesler and they said for this promo CD they would post all the money in a lump sum at the end of the period.

Daniel, their Truth in Savings says the same as you were told when you called Keesler. Under Share and IRA Certificates, Crediting, Compounding and Dividend Period, it reads: "Terms of less than 1 year: dividends are paid at maturity."

The largest credit union in Mississippi Keesler Federal Credit Union is offering very competitive CD rates for terms from 2 years to 5 years. Its Jumbo share certificates have the highest rates. These include a 2.30% APY for a 5-year term, a 2.00% APY for a 4-year term and a 1.50% APY for a 2-year term. Minimum deposit is $100,000. Rates are 10 basis points lower for a $1,000 minimum deposit. There's also a bump-up 3-year CD with a 1.65% APY for a $100,000 minimum and a 1.55% APY for...

As I was reviewing today's rate changes, I came across Keesler Federal Credit Union which had increased some of its CD rates. I was surprised I had not noticed this credit union before since it's the largest credit union in Mississippi. Its new CD rates got my attention since they're very competitive. Its Jumbo share certificates have the highest rates. These include a 2.00% APY for a 5-year term, a 1.65% APY for a 4-year term and a 1.40% APY for a 3-year term. Minimum deposit is $100,000. Rates are...

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